G Naga Sridhar

The Insurance Reuglatory and Development Authority of India (IRDAI), on Tuesday, said that life insurrance companies can offer long-term individual health insurane products forfive years or more.

“The premium for such products should remain unchanged for a period of three years, after which it can be reviwed and modified,” the regulator said in the amended consolidated guidelines health insurance regulations.

However, the life insurer intending to offer long term heatlh cover should not offer indemnity-based products, both in individual and group categories, as well as single premium united linked health insurance plans.

General and health insurers, as per the guidelines, may offer individual health products with a minimum tenure of one year for a maximum period of three years if the premium remains unchanged for the tenure.

While pricing the policies on the basis of age and health risk-factors, which has been the practice, the premium cannot be changed for one year in the case of renewable polices and three years for the rest of the categories (long-term).

To facilitate innnovation, the regulator has asked insurers to design pilot products that can be offered for a period not extending five years after due approval. It can eigher be made a regular product afterwards or withdrawn on the basis of valid reasons.

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